A company usually holds 310 pounds of wax in its warehouse. The company uses 48 pounds of wax perday and it takes 8 days for wax purchased from the supplier to arrive. The holding cost for wax is $0.37per pound per day.Round your answer to two decimal places.What is the company's average holding cost (per pound for wax)?dollars

The expenses incurred by keeping unsold items in storage are known as holding charges. Together with…

Answered: Round your answer to two decimal…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Medtronic sells medical devices. The company enjoys many growth opportunities, and so it measures its inventory holding cost at the rate of 25% per year. It currently turns over its inventory 3 times per year. Its gross margin (the difference between revenue and cost) as a percentage of its revenue is an enviable 65%. a. For an item that costs Medtronic $600 to produce, what would be the cost ($s) to hold this item for one year in inventory? b. For an item that costs Medtronic $350 to produce, what is the cost to hold it in inventory ($s)? (Assume it remains in inventory for the average amount of time for the company.)
Which of the following is an element of inventory holding costs? All of these are elements of inventory holding costs. investment costs housing costs material handling costs pilferage, scrap, and obsolescence
In a safety stock problem where both demand and lead time are variable, demand averages 150 units per day with a daily standard deviation of 16, and lead time averages 5 days with a standard deviation of 1 day. How much safety stock is required to maintain a 95% customer service level? What is the reorder point? As a part of your answer, include the z-score you used to get this answer.
In a safety stock problem where both demand and lead time are variable, demand averages 150 units per day with a daily standard deviation of 16, and lead time averages 5 days with a standard deviation of 1 day. How much safety stock is required to maintain a 95% customer service level? What is the reorder point? Include the z-score you used to get this answer.
A local bookstore turns over its inventory once every four months. The bookstore's annual cost of holding inventory is 36 percent. What is the inventory holding cost (in $) for a book that the bookstore purchases for $10 and sells for $18? ANSWER 6 A bicycle manufacturer purchases bicycle seats from an outside supplier for $20 each. The manufacturer's inventory of seats turns over 12.44 times per year, and the manufacturer has an annual inventory holding cost of 32 percent. What is the inventory holding cost (in $) for a bicycle seat? ANSWER
At Dot Com, a large retailer of popular books, demand is constant at 17,000 books per year. The cost of placing an order to replenish stock is $8, and the annual cost of holding is $3.00 per book. Stock is received 12 working days after an order has been placed. No backordering is allowed. Assume 250 working days a year. books. (Enter your response rounded to the nearest whole number.) orders. (Enter your response rounded to the nearest a. Dot Com's optimal order quantity is 301 b. The optimal number of orders per year is whole number.)
A coffee shop consumes 350 lbs of coffee per week at a steady rate. The coffee shop buys coffee from a supplier at the cost of $10 per lb, and ordering cost of $5 per order. The supplier takes 8 days to deliver an order (assume that 1 week = 7 days). What should be the reorder point (in pounds) for the coffee shop (i.e., at what level of inventory it should place an order with the supplier).
Paul’s Toy Distributor (PTD) sells 200 game consoles every week. PTD charges a $300 fixed cost for every delivery. PTD’s annual inventory holding cost is $45 per console. Assume that there are 52 weeks a year. Assume that PTD orders 1000 game consoles at a time. What is the average amount of time the consoles stay as PTD’s inventory before being sold? Find the closest answer.
Suppose that a local hardware store turns over its inventory of power tools 7.3 times peryear. If the hardware store has an average inventory of 130 power tools, what is its average daily sales rate for power tools? (Assume that there are 365 days per year.)
The Bosch factory in New Bern, NC uses dishwasher motors at a steady rate of 17308 units per year. Bosch procures these units from a supplier at a purchase cost of $58 per unit. Bosch receives an order 26 days after it is placed. Regardless of the number of units ordered, Bosch incurs a fixed cost of $2988 for placing, shipping, and receiving the order. The holding cost per unit per year is 30% of the purchase cost per unit. Assume Bosch operates 364 days, 52 weeks, or 12 months per year. Calculate the average time a unit spends in inventory between orders in DAYS for the optimal order quantity from the problem above. Rounding instructions • Carry your calculations to at least 3 decimal places. • Enter your answer rounded to one decimal place (nearest tenth).
Explain why holding inventory is not something good for companies
A fabricating shop orders supplies every 5 days. The lead time for deliveries is 8 days. Demand for oxygen averages 29 pounds per day with a standard deviation of 3.2 pounds. The holding cost for oxygen is $0.55 per pound per day. The fabricating shop wants to achieve an in-stock probability rate of 90% for oxygen. Round your answer to one decimal place. On average, how many pounds of oxygen will the fabricating shop have on order? pounds

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Round your answer to two decimal places. What is the company's average holding cost (per pound for wax)? dollars